In Latin America, high levels of renewable energy have raised demand for International Renewable Certificates (I-RECs), particularly in countries with substantial hydroelectric resources. These certificates are still in early stage in the area. However, the future of I-REC in Mexico is endangered by a power reform plan aimed at stifling private-sector investment.
Chile's I-REC market, on the other hand, is booming, thanks to the country's abundant renewable energy and rising demand from businesses looking to reduce emission. According to Santiago Climate Exchange (SCX), Chile's registry of these certificates began in 2018 with only six renewable energy plants. Since then, the number has risen to 79, including solar, wind, and hydropower projects.
Despite this, I-REC volumes are still low, and the secondary market is limited and opaque, according to SCX. I-RECs were registered for only 7% of the 36 GWh of renewable energy generated in Chile last year. SCX is aiming for a 10% market share by 2022. I-REC registration currently costs €1,000 ($1,131) every five year. The cost is likely to decrease as more businesses sign up
